1-1 Change management (BUS 442M) Chapter 6 Leadership and change 1-1

1-2 Learning objectives  Explain the differences between leaders and managers.  Discuss whether there is ‘one best way’ of leading or whether leadership style and behaviour should vary according to the circumstances;  assess the compatibility of different leadership approaches with different types of change situations.  Identify sources and causes of resistance to change and discuss ways of countering it.

1-3 Management and leadership Management L eadership Creating an agendaPlanning and Budeting- establishing detailed steps and timetables for achieving needed results, and then allocating the ressources necessary to make that happen. Establishing Direction- developing a vision of the future, often the distant future, and strategies for producing the changes needed to achieve that vision. Developing a human network for achieving the agenda Organizing and Staffing- establishing some structure for accomplishing plan requirements, staffing that structure with individuals, delegating responsibility and authority for carrying out the plan, providing policies and procedures to help guide people and creating methods to monitor implementation. Aligning people- communicating the direction by words and deeds to all those whose cooperation may be needed so as to influence the creation of teams and coalitions that understand the vision and strategies, and accept their validity. 1-3

1-4 Management and leadership ManagementLeadership ExecutionControlling and Problem Solving- monitoring results vs plan in some detail, identifying deviations and then planning and organizing to solve these problems. Motivating and inspiring- energizing people to overcome major political, bureaucratic and resource barriers to change by satisfying very basic, but often unfulfilled, human needs. OutcomesProcudes a degree of predictability and order, and has the potential of consistently producing key results expected by various stakeholders (customers, always being on time; for stakeholders, being on budget) Procudes change, often to a dramatic degree, and has the potential of producing extremely useful change ( new products that customers want, new approaches to labor relations that help make a firm more competitive) 1-4

1-5 Approaches to leadership theory  The ‘one best way’ to lead Trait Theory: underpins the idea that leaders are born not made. Kirkpatrick and Locke (1991) suggested six leadership traits: - Drive (achievement, ambition, energy, tenacity, initiative) - leadership motivation - Honesty and integrity, Self-confidence - Cognitive ability, knowledge of the business. 1-5

1-6 Leadership styles and behaviour - Wright (1996) groups different leadership, behaviours into four main leadership styles: 1. Concern for task: the extent to which the leader emphasizes high levels of productivity. (Also called concern for production, task oriented and task-centred leadreship) 2. Concern for people: the extent to which the leader is concerned about their subordinates as people, their needs, interests and problems. (employee- centred leadership) 1-6

1-7 Leadership styles and behaviour  3. Directive leadership: the extent to which the leader makes all the decisions concerning group activities themselves and expects subordinates simply to follow instructions.  4. Participative leadership: the extent to which the leader shares decision making concerning group activities with subordinates. ( democratic leadership) 1-7

1-8 Contingency approaches to leadership  Researchers began to appreciate that effective leader behaviour cannot be seperated entirely from the situation that the leader is working with. Effective behaviour therefore is contingent upon situational variables. 1-8

1-9 Contingency approaches to leadership 1-9

1-10 Contingency approaches to leadership Behaviour along a continuum:  Tannenbaum and Shmidt suggest that a leader should move along the continuum, selecting the style that is most appropriate to the situation prevailing.  They identify ‘forces’ that determine the style of leadership to use. 1-10

1-11 Contingency approaches to leadership  Forces in the manager: each manager will have their own combination of personality characteristics, skills and knowledge, values and attitudes that predisposes the adoption of one particular style of leadership or another.  Forces in the subordinate: subordinates vary in their characteristics such as the degree of support needed, their experiences and knowledge of the work and previous experience of different leadership styles. 1-11

1-12 Contingency approaches to leadership  Forces in the situation: divided onto two categories; first, the nature of the task or problem itself and second, the general context in which the leadership activity takes place. 1-12

1-13 Contingency approaches to leadership  Fiedler’s contingency model of leadership: The task- oriented/people oriented continuum of leadership styles is also the centerpiece of Fielder’s (1967) contingency theory of leadership. The three situational variables said to determine the style of leadership to be adopted are: 1-13

1-14 Contingency approaches to leadership  Leader-member relations: the extent to which a leader has the support of their group members.  Task structure: the extent to which the task or purpose of a group is well defined and the work outcomes can be judged clearly as a success or failure.  Position power: the amount of power the leader has over followers. Lower position power means that the leader has little authority to direct and evaluate the work of others. 1-14

1-15 Contingency approaches to leadership  Both Fiedler (1967) and Tannebaum and Shmidt (1973) dentify task structure as a contingent variable to be similar in both cases. 1-15

1-16 Contingency approaches to leadership  Hershey and Blanchard’s situational theory: How much importance should be attached to each contingency factor? This is the point of Hershey and Blanchard’s (1993) situational leadership theory which puts greatest stress on one major situational factor-the readiness of the followers. According to this theory, a leader’s behaviour should depend on the maturity and readiness of followers to accept responsibility and make their own decisions. 1-16

1-17 Contingency approaches to leadership  Path-goal theory of leadership: Originally developped by House (1971), maintains that the leader should use the style of leadership that is most effective in influencing ‘perceptions of the goals they need to achieve and the way ( or path) in which they should be achieved. Four leader behaviours are suggested by path- goal theory: 1-17

1-18 Contingency approaches to leadership 1. Directive behaviour: telling what to do and how to do it. 2. Supportive behaviour: showing concern for followers in an open and approachable manner. 3. Participative behaviour: inviting opinions and ideas from followers. 4. Achievement-oriented behaviour: setting challenges objectives that stress improvements over what was one acceptable and showing confidence that followers can achieve. 1-18

1-19 Matching organizational models and leadership roles  Quinn (1988) proposed four organizational models distinguished on the basis of two bipolar dimensions. These are:  - adaptability and flexibility versus the desire for stability and control  - Wether organizations are outward looking or internally focused towards the maintenance of systems and procedures. 1-19

1-20 Problems with contingency theory  Contingency theory has some serious limitations: There are just too many contingent variables that the theory has to account for: Studies struggles to justify why some situational variables should be identified and ohers excluded. Leader behaviour was not always situationally contingent. 1-20

1-21 New leadership theories  Charismatic leadership: The concept of charisma is not new and originated with Max weber who contrasted charisma with bureaucratic systems of control. Charisma is about people leading not by virtue of sets of rules and procedures but through creating a following for their mission. 1-21

1-22 Emotional intelligence  Goleman found the personnel capabilities that drive outstanding performance.  He grouped the capabilities into three categories : 1. Purely technical skills. 2. Cognitive abilities 3. competencies demonstrating emotional intelligence. 1-22

1-23 Transactional and transformational leadership  Transactional is based on giving people rewards for doing what the leader wants.  Transformational leadership which borrows much from Wever’s ideas about charisma relies on giving followers a purpose.  Transactional leaders make minor adjustments to mission and the ways people are managed.  Transformational leaders make big changes to mission and culture. 1-23

1-24 Team and distributed leadership  Team and distributed ledership theory moves away from the single heroic figure and recognizes the leadership can be shown by people throughout the organization. 1-24